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    • adam81
    • By adam81 8th Jan 18, 11:02 AM
    • 231Posts
    • 59Thanks
    Police Care Scheme..
    • #1
    • 8th Jan 18, 11:02 AM
    Police Care Scheme.. 8th Jan 18 at 11:02 AM

    One of my friends asked me if they should continue to put money in the police scheme or go private/add extra to the police scheme.

    I could have guessed the police one is better and the docs I've found prove this however I have a couple of questions if someone knows.

    It looks to pay 1/55.3 of each years salary at a contribution rate of 11.6%. However they are think they are only contributing 3% of their salary. One of the questions was is it better to contribute more to the police scheme. Is there any scenarios where they allow to you contribute less than the amount for your tier?

    If so I guess it would accrue at a lower rate?

    Assuming they are getting 1/55, the maths are incredible over contributing to a regular pension.

    Given it's CPI + 1.5% you can "assume" it will match inflation.
    Currently given they work part time they only contribute £35 a month which over 30 years compounded at 3% (taking 3% above inflation growth) they'd have £20K, which at 4% withdrawal works out to £800.

    Assuming they are earning the 1/55, and their salary is £14,000 (based on 3% they've told me) they'd have £255 per year, so after 30 years a pension of £7636 p.a

    Now of course if they have a reduced contribution of 3% they are not getting the full 1/55. And if they had to contribute the £128 (11% per month assuming £14k) the compounded pot goes up significantly to £75k, so a 4% withdrawal rate of £3,000 which of course brings them closer but the police scheme far better still of course.

    As well, they asked about extra contributions. I've found you can only buy additional pension to the amount of £6,500p.a but can't they see how this accrues. Does this go into a DC pot, of is it still part of a DB pot? If so how where can I find an accrual rate for that?

    I don't have all the answers you will need, but if someone has pointers around what I've asked that would be great so I can at least point them in the right direction for questions for the HR team, or to ask next time I see them.
Page 1
    • xylophone
    • By xylophone 8th Jan 18, 12:38 PM
    • 25,569 Posts
    • 15,101 Thanks
    • #2
    • 8th Jan 18, 12:38 PM
    • #2
    • 8th Jan 18, 12:38 PM but "contracting out" ended in 2016.
    • bluenose1
    • By bluenose1 8th Jan 18, 12:53 PM
    • 1,976 Posts
    • 3,192 Thanks
    • #3
    • 8th Jan 18, 12:53 PM
    • #3
    • 8th Jan 18, 12:53 PM
    My husband retired last year from the police but I think he was contributing 18% of his salary to his pension. The deductions were massive, I think they were over £500 per month.
    Unless the scheme has changed massively seems strange that your friend is only contributing 3%.
    Money SPENDING Expert

    • adam81
    • By adam81 8th Jan 18, 1:41 PM
    • 231 Posts
    • 59 Thanks
    • #4
    • 8th Jan 18, 1:41 PM
    • #4
    • 8th Jan 18, 1:41 PM
    Thanks, I had found the first PDF but I can't see that is says what benefits additional contributions buy you.

    I'll have to check the 3% workings with them, as I'd found contributions similar to that 2nd page you referenced.
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